Governments will go bankrupt
Saturday, August 29, 2009
Governments around the world will go bankrupt and then proceed to war. This predicted by Marc Faber, Swiss economic historian and investor, this week in an interview on the Australian news Late Line Business.
"The real economy imploded between late 2007 and March 2009. By encouraging especially large packages of governments and the managment of funds by central banks to stabilized the economy and there was a rebound in economic activity. The question is how durable is this recovery and whether The rebound is not "borrowed" from the future, "said Faber.
Faber thinks that further stimulus and the possible revival of the money could take longer than expected: "Even if the economy deteriorates further it will continue to throw money at the system."
The investor expects the large government deficits "unintended consequences" we have "broken in five to ten year deficits the real crisis when the whole system falls down. Passing through the bailout and stimulus bankrupt and many will fall through the huge mountain of debt. Next governments will begin a new war. "
Faber is really laughing at the U.S. government, where he has zero confidence in: "Who the hell confidence in the U.S. government, especially if they can actually think?!?"
Also in the reappointment of Ben Bernanke, the chairman of the U.S. central bank the Federal Reserve, Faber has no confidence. Unlike Wall Street and most other economists, called the Faber reappoint Bernanke a "total joke".
"Bernanke is like a captain on a ship. He leaves the ship, getting warnings that a storm arrives, but by sea. Bernanke to drown the ship, thousands passengers drowned, but he knows five of his crew he can save, and get to This heroism then a medal. The five crew members and passengers make Wall Street the rest of the country, which subsequently prove to be bankrupt, "said Faber, who sees no alternative yet for its pessimistic scenario.